Merger between Westpac and St George - Case Study Example

Executive Summary The report which analyses the merger between Westpac and St George highlights the different dimensions and the benefits and demerits which will be associated with the merger. This paper evaluates the enterprise architecture which will be seen after the merger and the different changes which needs to be accounted in relation to framework associated with data architectures, security architectures, process taxonomies, governance frameworks CRM, ERP & SCM management and It infrastructure so that better use of resources becomes possible and the long term vision can be easily accomplished. It is highlighted that Westpac and St George needs look towards ensuring that total integration of the different function takes places by the adoption of functionality integration architecture so that the parameter looks at integrating multiple applications especially those catering to the niche requirements. Along with it adoption of proper solutions and determining the integration of functionality will help to maximize the overall impact and ensure better results can be achieved from the merger Table of Contents Introduction 3 Business Architecture 3 Different Proposed Enterprise Architecture 4 Architecture Enterprise for Westpac and St George 8 Strategy for ERP, CRM & SCM 8 SAP Business All in One 10 Merits & Demerits of Integrated Functionality Solutions 11 Options before Westpac and St George 12 Future Direction 17 IT Integration Approach 18 Conclusion 19 References 21 Introduction Mergers and acquisitions are a common phenomenon which is witnessed on a continuous basis as different reasons and business prospects makes organizations to undertake those decisions. Westpac which is looking towards entering into a merger with St George needs to look at evaluating the different dimensions and the benefits and demerits which will be associated with the merger. This paper will look at evaluating the enterprise architecture which will be seen after the merger and the different changes which needs to be accounted in relation to framework associated with data architectures, security architectures, process taxonomies, governance frameworks and so on. The report will then look at evaluating the strategy which needs to be implemented with regard to CRM, ERP & SCM management so that better use of resources becomes possible and the long term vision can be easily accomplished. The paper will then look towards providing different recommendations and cover the different IT infrastructure through which needs to be developed so that overall objective of the business can be achieved. It will also look towards evaluating the alternatives and highlight the different merits and demerits associated with it and the manner in which overall changes have to be implemented. Business Architecture The post merger between Westpac and St George should look towards creating the required level of synergy and reduce the redundancies and inefficiencies so that improper integration of business process can be identified and can be improved. The level of integration needs to look at determining the level of enterprise application which has to be developed so that a rationalized process which will improve the overall manner of carrying out activities can be ensured. The extent to which integration of the business activities will take place is dependent on the extent of similarity which is seen in the process of carrying out different activities. The post end merger should look at brining about a change in the manner the different resources are used and should ensure that the cost of the business gets reduced and the overall business phenomenon is developed so that the different accomplishment can be achieved within the time horizon (Gray & Khalid, 2006). The merger will thereby be based on agility and look towards improving the entire process so that a different business architecture is developed and will look to transform the entire working pattern so that better results can be achieved. The IT organization structure thereby looks at having properly developed system, application, data and architecture so that the newly merged entity is able to carry out the different functions in the most effective manner. The overall mechanism thereby has to look at bringing the required change so that better use of resources and the desired objectives can be achieved. Different Proposed Enterprise Architecture Westpac and St George while looking to enter into a merger need to be careful and choose among the different proposed architecture so that the architecture which will provide the best result can be achieved. Some of the proposed alternatives which can be used for the proposed merger are as Integration End State: The merger between Westpac and St George should look towards choosing the final objective that they want to achieve from the merger. Suppose Westpac and St George look consolidating the different functions than steps and strategies have to be developed in that direction. For example suppose that the objective is to integrate the reporting function than the consolidation of financial information needs to be considered. In a similar manner integration of HR function requires consolidating the HCM applications (Lucas & David, 2008). Both the organization need to plan carefully as they are looking to integrate those functions and will require working on the different dimensions so that better productivity can be ensured through the process. Enterprise Evaluation Landscape: Westpac and St George both need to look at their framework based on which the organization works so that the different areas which needs to be consolidated can be identified. This holds an important function for the integration and rationality of mergers and will help to thereby consolidate the position of both the organization (Lummus, Vokurka & Krumwiede, 2008). For example Westpac and St George while merging will look to protect their individual functionality and will develop common areas where they will look to work with one another. This will ensure differentiation from others and at the same time ensure that better efficiency and effectiveness in the process can be gained. Functionality Mapping: Westpac and St George needs to identify the best package which fits the merger and the manner in which different customizations will help to deal with the required business aspect. This will have an important bearing as it will help to determine the changes which are required in the different functions and will provide an opportunity to develop business process through which maximum effectiveness and efficiency can be achieved. Application Integration Architecture: The integration between Westpac and St George needs to be developed on the parameter which looks at integrating multiple applications especially those catering to the niche requirements. The choice of enterprise application should be done after careful planning so that the different facets which will support the development of the business can be ensured. For example the merger between Westpac and St George needs to look at different applications like CRM and ERP so that overall management of the different resources and integrating the different activities becomes possible. This will help to bring the required change and will facilitate a process through which business activities will be better controlled and coordinated so that the long term prospect of the merger improves. Application Re-Configuration & Customization: The process of merger between Westpac and St George will look towards enhancing and modifying the business process so that better integration of different business process becomes possible. The transition phase for the merged enterprise should be aimed towards re-configuring and customizing the IT application process so that enhanced business requirements helps to carry out the business process in the most effective manner. This will help to reduce the customization of individual IT requirements and will minimize the overall customization so that better integration of different activities becomes possible. Managing & Merging Data: The process of merger between Westpac and St George needs to carefully plan the mechanism which will be adopted to merge the data. While looking to carry out the process of merging the data special attention has to be given that the data merged provides similar results on similar grounds when individual entities were considered. Ineffectiveness in creating an architecture which will determine the manner in which data will be merged will have an impact on the long term performance and will make it difficult to carry out the functions effectively. Meeting Regulatory Requirements: The merger between Westpac and St George should be such that it meets the different regulatory requirements especially while managing the data. It is critical that the process of merger doesn’t tend to lose the benefits associated with the merger of data and requires a sensitive process while dealing with data. In addition to it the compliance to different regulatory requirements needs to be properly followed and monitored so that the process of merger gets reflected on the entire phase (Lee & Cetinkaya, 2000). Abiding to the regulatory needs and requirements will have positive impact and will help to bring about the required change so that a positive momentum which will help the merger to initiate important steps can be ensured. Architecture Imperatives: The merging entity i.e. Westpac and St George has different applications, middleware components and interfaces which needs to be intertwined and integrated in such a manner that better interface can be emerged. This will require developing the required architecture in a manner which is aimed towards improving the manner in which the different resources are used and also transforming the entire strategy through which overall effectiveness and efficiency can be achieved. Infrastructure Imperative: The merging entity needs to look at determining the optimal mix with regard to the infrastructure which will be merged. For example determine the hardware, network (LAN), security, firewalls and other aspect needs to be planned carefully. The mechanism which is adopted has to be such that it creates an architecture through which better results can be achieved. Architecture Enterprise for Westpac and St George Westpac and St George are looking to integrate their different functions and functionalities and are aiming to work as a merged unit where different functions, components and infrastructure will be shared and used by each other. The process will require careful planning and identifying the manner in which the development of the architecture helps to provide maximum integration. This will require integration of different functions, architecture, infrastructure and other areas so that architecture can be developed which will be aimed towards bringing a change in the manner business decisions are taken and will help to maximize the overall potential of carrying out business. Strategy for ERP, CRM & SCM The merged entity needs to develop a process where integration of different IT infrastructure looks to develop ERP, SCM and CRM solutions. The objective should be such that the merger should look at improving the manner in which the different activities are carried out and helps to reduce the inefficiencies so that the business objectives can be achieved in the best possible manner. Merger between Westpac and St George would tend to reduce the boundaries which is present between the organizations and thereby needs to have a better integration of ERP, CRM & SCM solutions so that better effectiveness in the manner different business process is carried out can be ensured. The need after the merger is of an ERP which is product-centric and allows the opportunity to carry out production and distribution function using the same functionality (Chopra and Meindl, 2004). This will require that the merger look towards having an ERP strategy which focuses on activities apart from traditional back office work, indirect procurement and human capital management. The possibility of the merger should be such that it should allow different functions and operations like customer and order management, inventory management, product life cycle management (PLM), direct procurement, and the management of their manufacturing and/or distribution facilities, often including asset management to be carried out effectively from the same place. The overall composition and development after the merger has to be such that simplifies the manner in which different activities are carried out and facilitates a process which entails towards better opportunities of growth. The process should be such that the software which is identified should not be very sophisticated nor should be complex so that the different business activities which were previously being carried out can be carried out in a similar fashion (Chopra and Meindl, 2004). The need is for the development of an information centric approach which will aim at developing product which is differentiated and provides an opportunity to be executed in different business and non-business related areas. While looking to identify the process and mechanism which will be used it is important that vendor support in the same direction is received as it will help to facilitate a process which will ensure information based process and will limit the complexity that the solution could otherwise present. The different ERP, CRM and SCM solutions which are available can be used for different purposes but the merging company needs to integrate the different functions and have to aim towards a single solution so that it helps to bring effectiveness and provides useful insights. Having different solutions for different functions would mean that the results received from the different functions of ERP, SCM & CRM needs to be integrated so that better business solutions can be achieved. Having a single solution which takes care of ERP, SCM & CRM needs would be a better option as it would multiply the effectiveness and provide different opportunities through which overall mechanism through which different services are rendered would be better (Chopra and Meindl, 2004). The process would help to provide better results and will also act as a guide through which overall process and mechanism through which different results are achieved would be obtained. This would help to reduce the redundancies and ineffectiveness and will help to find out important direction and directives through which the overall business prospects will improve. The different decisions which will be taken after the integration of the different functions would help to provide better results as it would look towards bringing about a change in the manner different decisions are taken. The process would thereby help to ensure that the merger would be better placed and the different decisions which are taken based on it is better and would help to reap longer benefits over a longer period of time. SAP Business All in One This is one of the solutions which Westpac and St George can look towards using after the merger as the solution helps to carry out different functions together. The solution is preconfigured with ERP, CRM & SCM functionality which helps to combine the different functionalities and based on it provides an opportunity to carry out different functions. The solutions provides an opportunity to use different business process documentation that includes feature set descriptions, process flow diagrams and step-by-step user guides which will help to act in a specific manner (Chopra and Meindl, 2004). The process will also help to ensure that integrating the different functions will provide better results and will guide the management regarding the different strategies which they need to adopt. Using a process which integrated the different functionalities helps to ensure that the underlying solution reduces the impact on the business due to different solutions which are available and might not have been possible otherwise. In addition to it the opportunity to have additional enhancements and customization provides an opportunity where the different needs and requirements of Westpac and St George will be better achieved. This will facilitate the entire process and will bring about a change in the manner different decisions were taken in the merger. Merits & Demerits of Integrated Functionality Solutions The different advantages of using integrated functionality solutions which take care of different functions like ERP, CRM & SCM are as It helps to provide better solutions as integrating the different functions helps the business to develop an inter linkage between the different functions. This strategy helps to ensures that the business is able to come up with innovative solutions. Further when organization merge the objective is to improve the overall efficiency and the process of integrating different functions provides better results which thereby ensures better decisions for the future Integrated functionally solutions are less costly as compared to the different solutions and also multiply the opportunity as different add-ons and process can be carried out over it. This helps to ensure that the gains for the business outweigh the cost associated with it. The entire process thereby leads towards better efficiency and maximizes the manner in which different resources are used. It provides an opportunity to have rich functionality and well documented industry specific requirements by having a process which helps to think out of the box. This increases the opportunity to be able to be innovative and ensures that the process leads towards development of a process which is better and helps in the process of decision making. The use of integrated functionality solutions also tend to work on different dimensions which would have otherwise been avoided. The person using the solutions either knowingly or unknowingly are able to carry out different varied functions and are able to work on the different dimensions through which better results can be achieved. The different disadvantages of using integrated functionality solutions which take care of different functions like ERP, CRM & SCM are as The use of integrated functionality solutions is a complex process and requires special knowledge and expertise to be able to generate and interpret the report correctly. Any error or lack of expertise on the part of the user could make the entire result to be wrong and any decisions which are taken based on it will be ineffective. The integrated functionality solutions rely on different inputs and functions to be addressed together. The lack of effectiveness in providing the different inputs together would lead towards wastage of resources as the entire process which will be carried out based on it will not fetch the same result. Usability of the integrated functionality solutions is another issue which is associated with it. In case the person using the integrated solution doesn’t use the different functions which are associated with the solution than using the solution is a waste. To ensure optimal utilization it is essential that all the reports which are generated through the solution is used and the process tends towards ensuring that the reports facilitates the process of decision making Options before Westpac and St George Westpac and St George who are looking towards the merger have different options where they can look towards merger on different aspect and the different advantages and disadvantages are as follows End State Integration: The merger between Westpac and St George should look towards choosing the final objective that they want to achieve from the merger. Suppose Westpac and St George look consolidating the different functions than steps and strategies have to be developed in that direction (Disney and Towill, 2003). Both the organization need to plan carefully as they are looking to integrate those functions and will require working on the different dimensions so that better productivity can be ensured through the process. This will look towards ensuring that the end objectives are integrated and the different functions which will be needed to achieve those can be integrated. This will have the following advantage It will help the business to plan early and determine the business architecture which needs to be used so that the objectives can be achieved. This will thereby help to integrate those functions and bring about a change in the behaviour of the organizations so that the goals can be achieved Both the merging company will be in place and will understand the different functions which need to be integrated so that the objectives is achieved. This will help to improve the focus and will provide an opportunity where the business can consider on the core areas and transform the manner in which business takes place It will help in effective management of the resources as the different functions which are integrated can be used towards the growth and development of the business and entire process will help to bring about a change in the manner different business decisions are taken The disadvantages of using this mechanism are as Both the organization will only look to integrate those functions which are required and will not be willing to help on other areas. This could result in a situation where the integration of different function is required and would thereby restrict the manner in which the organization works thereby making it difficult for the goals to be achieved. This would also make one organization doubt on another as both the players won’t be willing to help other than the agreed areas and would thereby make it difficult for the business to achieve the goals. Westpac and St George both need to look at their framework based on which the organization works so that the different areas which needs to be consolidated can be identified. This holds an important function for the integration and rationality of mergers and will help to thereby consolidate the position of both the organization. Functionality Integration: Westpac and St George needs to identify the best package which fits the merger and the manner in which different customizations will help to deal with the required business aspect. This will have an important bearing as it will help to determine the changes which are required in the different functions and will provide an opportunity to develop business process through which maximum effectiveness and efficiency can be achieved. This will help to bring forward the following advantages It will help the business to concentrate on the areas which they are merging and take care of the other areas by themselves which are not merged. This will thereby reduce the dependency on one another and will provide an opportunity where different work can be carried out effectively. Both the merging company will be in place and will understand the different functions which need to be integrated so that the objectives is achieved. This will help to improve the focus and will provide an opportunity where the business can consider on the core areas and transform the manner in which business takes place Effective management process can be achieved as integration of the different functions which will help to achieve the objectives will help to ensure better use of resources and will provide an opportunity where the different resources will be used in the best possible manner. The disadvantages associated with the same is as It could lead towards creating problems in execution as only integration of certain functions could lead towards a situation where one function overlaps the other making it thereby difficult to execute the plans so that the objectives can be achieved The efficiency which the merger should look towards providing will not be achieved as the organizations will not be committed to the highest level and will look towards carrying out the different functions as they used to do before. Application Integration Architecture: The integration between Westpac and St George needs to be developed on the parameter which looks at integrating multiple applications especially those catering to the niche requirements. The choice of enterprise application should be done after careful planning so that the different facets which will support the development of the business can be ensured (Christensen and Overdorf, 2000). This will help to bring the required change and will facilitate a process through which business activities will be better controlled and coordinated so that the long term prospect of the merger improves. The process looks at integrating the major functions and based on it look at developing a process which will provide maximum gains over a longer period of time. The advantages associated with such a merger is as The merger where all the different functions are integrated will look at developing consolidated solutions and will look towards reducing the gap which is present among the players. This will help both the organization to work on their strength and the combined strength of both the organization will help to provide bigger results The merging will use different applications, middleware components and interfaces which need to be intertwined and integrated in such a manner that better interface can be emerged (Christensen and Overdorf, 2000). This will help to achieve results in a far superior manner and will provide an opportunity where resources will be used in an effective manner and will multiply the effectiveness through which different activities are carried out. The merging entity needs to look at determining the optimal mix with regard to the infrastructure which will be merged. For example determine the hardware, network (LAN), security, firewalls and other aspect needs to be planned carefully. The mechanism which is adopted has to be such that it creates an architecture through which better results can be achieved. This will thereby help to save on the vital resources and will multiply the effectiveness through which different process is carried out It will lead towards increased efficiency and would have an impact on the manner the different resources are used. This would entail into a situation where the business is able to achieve the desired result through the process of changes. This will help the business to bring a change in the mechanism of carrying out different activities and will result in achieving the objectives The disadvantage of such a merger is as In case the merger is not successful it would lead towards wastage of resources for both the parties and then carrying out the different business process would become difficult. The transition phase for the merged enterprise should be aimed towards re-configuring and customizing the IT application process so that enhanced business requirements helps to carry out the business process in the most effective manner. Lack of expertise in dealing with it will increase the inefficiencies and multiply the redundancies which will thereby have a further impact on future performance. There is an increase risk that the merger doesn’t take place on similar grounds and the results which are achieved after the merger is wrong. Ineffectiveness in creating an architecture which will determine the manner in which data will be merged will have an impact on the long term performance and will make it difficult to carry out the functions effectively (Christensen and Overdorf, 2000). This would have a long term impact and will have a bearing on the manner different business activities are carried out It is critical that the process of merger doesn’t tend to lose the benefits associated with the merger of data and requires a sensitive process while dealing with data. This will require careful planning and the lack of effectiveness in dealing with those could have an impact on the overall performance and wouth lead towards total wastage of resources. Future Direction Westpac and St George needs look towards ensuring that total integration of the different function takes places by the adoption of functionality integration architecture so that the parameter looks at integrating multiple applications especially those catering to the niche requirements. The choice of enterprise application should be done after careful planning so that the different facets which will support the development of the business can be ensured. This will help to bring the required change and will facilitate a process through which business activities will be better controlled and coordinated so that the long term prospect of the merger improves (Scheuing and Johnson, 2009). The process looks at integrating the major functions and based on it look at developing a process which will provide maximum gains over a longer period of time. This will also help to bring about a complete change as integrating the different functions will help to multiply the objectivity of the goals and will ensure that the business will be better placed to deal with the different resources and multiply the gains which are associated with it. IT Integration Approach The merger after identifying the architecture which will be favourable for them also needs to look at deciding the IT integration approach which will be followed. The merged entity needs to develop a process where integration of different IT infrastructure looks to develop ERP, SCM and CRM solutions. The objective should be such that the merger should look at improving the manner in which the different activities are carried out and helps to reduce the inefficiencies so that the business objectives can be achieved in the best possible manner. The merger will look towards having a product-centric which will require that the different functions like production and distribution will need to be carried out with the same function. The merger will require that the concentration is done on activities like back office work, indirect procurement and human capital management which will require the development of architecture based on it. In addition to it the development of IT infrastructure should look towards having the different resources at their disposal so that the manner in which different results are to be achieved can be designed and the business is in a position where they are able to carry out different functions in the best manner. Westpac and St George can look towards using Sap All in One Business Solution as it will help t integrated the different functions together. Since, the solution is configured with ERP, CRM & SCM functionality it will help to carry out the different functions in the most effective manner. The solution also has multiple options and can be processed for different documentation that includes feature set descriptions, process flow diagrams and step-by-step user guides. This will entail that the overall process will shape the manner in which the overall working is developed and carried out so that the results which are achieved based on it is better. This will also lead towards ensuring that the business will be able to deal with the different needs and bring about a change in the manner different business process are carried. The usage of the IT approach will also lead towards working on the different functionalities and dealing with the manner in which the business is looking towards developing the different functions so that better goals can be achieved. This will also help to ensure that the architecture which is developed matches with the needs and requirements of the IT infrastructure. This will help to develop the required process and will look towards multiplying the overall opportunities so that the business will be better placed in dealing with the different needs and requirements of the business. Conclusion The paper thereby looks towards highlighting the different business architecture, IT infrastructure, CRP, ERP and SCM solutions need to be developed. This will help to fill the different gaps which the different gap which is present and will help to ensure that the overall effectiveness through which the different resources can be achieved. Westpac and St George needs look towards ensuring that total integration of the different function takes places by the adoption of functionality integration architecture so that the parameter looks at integrating multiple applications especially those catering to the niche requirements. 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